Petrologistics to start propylene plant in Texas

11-Oct-10

Petrologistics - US propylene producer, is to begin feeding its new 500,000 tpa propane dehydrogenation unit in Houston, Texas as per Platts. Start up was originally planned for late August/early September, but was deferred due to mechanical setbacks on at least two occasions. Initial production is expected to be 70% CGP and 30% PGP. Propylene contracts in the US could be under further downward pressure given the additional supply. US contracts were set to fall 1.5 cents in October as many participants in the negotiation process were heard to have agreed to the decrease.